Euro Recovers as Risk Appetite Rises
The euro shows gains versus US dollar today. The euro/dollar pair increased by 0.55% to trade at 1.1373 level. The single currency retreated from recent lows of $1.1302, capping three consecutive trading session losses, pressured by weak Eurozone data as well as Italian budget worries and Brexit woes.
Recent Eurozone economic data gave no support to the euro. CPI Flash Estimate ticked higher from 2.1% to 2.2% in October and Core CPI Flash Estimate rose to 1.1% in October, up from 0.9% in September. Both of these readings matched the forecasts. Eurozone GDP posted a weak gain of 0.2% in the third quarter, down from the 0.4% gain in the second quarter. On an annualized basis, Eurozone economic growth slowed to 1.7% in Q3, down from 2.1% in Q2.
Markets are focused on meeting of the Bank of England. The central bank is unlikely to announce any rate action. In September, the Bank of England decided to keep rates at 0.75%. At the same time, the BoE highlighted greater market concerns surrounding Brexit.